By George Ward
Wemade’s governance token, WEMIX, was removed from the market on Thursday after a Seoul court refused a petition to halt the process. This action caused panic in the crypto market.
Following the court verdict, four cryptocurrency exchanges, Upbit, Coinone, Korbit, and Bithumb, delisted WEMIX from their platform. Last month, Wemade (a famous Korea-based blockchain game developer) applied for a temporary injunction.
The court judgment came after a request from the DAXA group, which consists of South Korea’s top five crypto exchanges, on November 24th. DAXA stated that it wants to stop trading WEMIX tokens on the five exchanges beginning from December 8th.
Furthermore, DAXA noted that Wemade was not transparent. The group alleged that the company presented false info about its token.
According to DAXA, Wemade had more tokens than the amount it stated. Also, the group accused the company of giving investors insufficient and incorrect information.
Before news of WEMIX’s delisting from DAXA, the token was trading at about 2,200 Won. Unfortunately, the notice of the delisting pushed the token’s price down to 500 Won.
Additionally, Wemade’s request for a temporary injunction later in November caused this price drop to reduce. The token even recovered and traded above 1,500 Won.
But it was fluctuating around this region till the latest court decision. On Thursday, the value of WEMIX fell following the court’s ruling.
The token’s price dropped by about 33.33% to 280 Won on Upbit at 1 pm. Eventually, WEMIX’s price closed at 209 and 309 Won on Upbit and Bithumb, respectively. Both platforms later deleted the token two hours later.
Exchanges Give Users Deadline For Withdrawals
Experts believe the country’s local crypto marker will keep declining because WEMIX is a popular crypto among Korea-based gamers. Also, the OKX crypto exchange announced that it would remove the token from its exchange. According to OKX, the company took such a decision after considering user feedback.
Furthermore, all holders of the WEMIX token on DAXA member exchanges (Coinone, Korbit, Bithumb, and Upbit) must liquidate their tokens. However, they can trade them on other platforms like Gate.io and KuCoin.
On these platforms, they can withdraw their assets or keep trading WEMIX. Also, users have until January 5th and 7th to withdraw their WEMIX coins from Bithumb and Upbit, respectively.
Users on Coinone have until December 22nd to withdraw their WEMIX. As for Korbit customers, the deadline for the withdrawal of WEMIX tokens is the end of 2022.
Before the court’s decision, Lee Bok-Hyun, the chairman of the Financial Supervisory Service, stated that the agency was monitoring the issue. However, it is uncertain if anything will change now.
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